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MSMEs do not have the technical acumen or the human resource expertise to produce documents which are required by financing institutions.
The most difficulty comes to producing and presenting cash flow statements.
Some potential borrowers cannot compute cash projections
The most difficulty comes to producing and presenting cash flow statements.
Some potential borrowers cannot compute cash projections
Especially Micro and Small Firms, which are managed informally by households, usually do not maintain proper book-keeping and accounting systems.
Banks have to use their own historical loss databases to compute credit metrics such as PD, LGD, EAD,etc.
And most of them have errors
Banks have to use their own historical loss databases to compute credit metrics such as PD, LGD, EAD,etc.
And most of them have errors
Demographic and Geographic indicators can play a role in assessing and evaluating credit risk management, especially during the loan examination phase.
Sectoral Loan Risk Data can be aggregated to compute Risk Measures.
#Saunders FI-Risk management has a chapter dedicated to it
Sectoral Loan Risk Data can be aggregated to compute Risk Measures.
#Saunders FI-Risk management has a chapter dedicated to it
